Yesterday in Naypyitaw, Myanmar, Bashneft International B.v. , a wholly owned subsidiary of JSOC Bashneft, signed a Production Sharing Contract (PSC) for oil Block ละ-4 with Myanmar Oil and Gas Enterprise (MOGE). The signing bonus will total US$ 4 million. Bashneft International B.v. is the operator of the project, holding a 90% stake, while Sun Apex Holdings Ltd from Myanmar holds the remaining 10%.
Under the PSC for Block ละ-4, the partners shall implement a three-year geological exploration programme, which may be extended for another three-year period and includes seismic surveys and drilling of two exploration wells. Investments in the geological exploration programme shall total US$ 38.3 million.
Block EP-4 with the area of 841 sq. km is located in the Central Burma Basin. 2D seismic surveys covering 132 linear kilometres have been conducted at the site, and three prospecting wells have been drilled, which have uncovered six promising oil-bearing formations. Block EP-4 is located in an area with well-developed oil and gas transportation and processing infrastructure.
Bashneft gained the right to conclude the Production Sharing Contract for Block ละ-4 in October 2013, when it won the Onshore Blocks Second Bidding Round conducted by the Ministry of Energy of the Republic of the Union of Myanmar.